Current Rules (2023+)
Paid medical collections are removed from credit reports. Unpaid medical collections under $500 are excluded. New medical collections do not appear for at least one year. These rules were implemented voluntarily by Equifax, Experian, and TransUnion and apply to all three bureaus. The CFPB is also pursuing rulemaking to further restrict medical debt reporting.
What Still Appears
Unpaid medical collections over $500 that are more than one year old still appear. Court judgments from medical debt lawsuits appear in public records. Medical credit cards (CareCredit, etc.) are reported as regular credit accounts. Personal loans taken to pay medical bills are reported as personal loans. Only direct medical debt and medical collections get the special treatment.
How to Dispute Medical Debt on Your Report
Pull all three credit reports from annualcreditreport.com. Look for medical collections that should have been removed (paid, under $500, less than 1 year old). Dispute online with each bureau or by certified mail. Include supporting documentation. The bureau has 30 days to investigate. If the debt cannot be verified or should have been excluded, it must be removed.
Proposed CFPB Rule
The CFPB has proposed removing all medical debt from credit reports and prohibiting lenders from using medical debt in credit decisions. If finalized, this would be the most significant change in medical debt reporting ever. The rule would override the voluntary bureau changes with binding federal regulation. Check cfpb.gov for current status.
Frequently Asked Questions
Does the $500 threshold include interest and fees?
The threshold is based on the balance reported to the credit bureau. If the original bill was $400 but collections added $150 in fees bringing it to $550, it may appear. Dispute any charges that push a sub-$500 bill over the threshold.
How often should I check my credit report for medical debt?
At least annually, and more often if you have recent medical bills. You can get free weekly reports from annualcreditreport.com. Check all three bureaus -- they may have different information.
Can a medical collection reappear after being removed?
It should not under the current rules. If a paid or sub-$500 medical collection reappears, dispute it immediately. If a bureau re-inserts a removed item, they must notify you within 5 business days.
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